MDP Criticises 2026 State Budget Over Lack of Clarity

Former President Ibrahim Mohamed Solih has criticised the proposed state budget for 2026, raising concerns over the lack of clarity regarding the implementation of projects. 

Speaking at a ceremony in HA. Hoarafushi on last Thursday night to mark ‘Hoarafushi Day’, Solih highlighted the challenges of centralised development and questioned how the government plans to execute its initiatives.

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Solih noted that when he took office in 2018, the Maldivian economy was highly centralised around the capital, Malé, which had prompted migration from the atolls and contributed to overcrowding in the city. 

He emphasised that effective project implementation requires careful planning, citing his administration’s approach of securing funding and preparing project renderings before initiating development. He attributed the successful completion of the first phase of the Hoarafushi road redevelopment to this method.

The former president criticised some projects in Hoarafushi that have stalled, attributing the delays to a lack of planning within the current administration. He described both the 2025 and 2026 budgets as “high” but lacking in detailed guidance for project execution, questioning how the government intends to achieve the planned developments.

Solih also raised concerns over preparations for the new terminal at HDh. Hanimaadhoo International Airport, arguing that other necessary development work in the region has been neglected. He warned that without efforts to promote tourism in Boduthiladhunmathi, including possible incentives for foreign investors, the airport could face financial losses. He further called on the government to provide support to the private sector.

Criticising the broader governance system, Solih stated that institutions including the parliament, judiciary, and independent bodies are under centralised control, undermining accountability. He urged Maldivian citizens to assess the situation and take action.

Maldivian Democratic Party (MDP) President and former Foreign Minister Abdulla Shahid also criticised the government’s proposed MVR 64.2 billion budget, describing it as disconnected from economic and social realities.

The government had planned to raise MVR 7 billion in external budget support this year. However, so far into the PNC administration, it has failed to secure even a single rufiyaa from the market or any bilateral partner. This failure reflects both an economic policy collapse and…— Abdulla Shahid (@abdulla_shahid) October 30, 2025

In a post on X, Shahid noted that rising prices, stagnant business growth, and a lack of foreign aid offer little hope of improving citizens’ livelihoods. He highlighted that despite efforts to raise MVR 7 billion in budget support, no funds had been received from foreign markets or international partners.

The proposed 2026 budget represents a MVR 7.6 billion increase from the current MVR 56.6 billion budget, largely due to record debt repayments. Finance Minister Moosa Zameer stated that the government will need to spend USD 1.1 billion on debt servicing next year. He added that the budget includes measures to restore fiscal and debt sustainability and aims to deliver long-term solutions in health, education, and energy, while raising MVR 16.8 billion through foreign loans, bond and sukuk sales, and multilateral or bilateral financing.

Critics, however, pointed to unfulfilled commitments in the current budget. Of the MVR 7.7 billion in projected savings from fiscal reforms, none have been implemented. Only MVR 270 million of the MVR 2.59 billion earmarked for free aid has been received as of 23 October. President Dr Mohamed Muizzu has designated health as the top priority in next year’s budget, whereas housing was prioritised this year, with only nine percent of the allocated MVR 1.8 billion for housing projects spent so far.